Mumbai: The rupee appreciated by 23 paise to 70.21 against the US dollar in opening trade Wednesday, driven by easing crude prices, higher opening in domestic equities and on US-China trade talk hopes.

Forex dealers said, investors sentiments were buoyed after US President Donald Trump on Tuesday hoped that the world's top two economies would be able reach an agreement.

The rupee opened strong at 70.32 at the interbank forex market then gained further ground and touched 70.21 amid a positive opening in domestic equities, displaying gains of 23 paise over its last close.

The rupee Tuesday recovered 7 paise to close at 70.44 to the US dollar.

The President also described his relationship with President Xi Jinping of China as "extraordinary".

When asked about the talks with China having "collapsed". He rejected that characterisation. "We have a very good dialogue... it'll always continue. We had a deal that was very close and then they broke it," he said.

Meanwhile, foreign fund outflows weighed on the domestic currency and restricted the upmove.